If there is a general rise in fear of the financial system, then the actual money multiplier is likely to fall.

Name: If there is a general rise in fear of the financial system, then the actual money multiplier is likely to fall.
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When there is a general rise in fear of the financial system, people tend to hold onto their money rather than depositing it in banks. This reduces the amount of money available for banks to lend out, which ultimately lowers the money multiplier.

If There Is a General Rise in Fear of the Financial